A heady cocktail of three variants combined to take the fizz out of United Spirits’ performance in the third quarter. The UB Group flagship company took a hit of 64 per cent in its net profit, which dropped to Rs 47 crore, compared to Rs 130 crore in the year-ago period. The total income was static at Rs 1,968 crore.
According to company officials, the rise in prices of extra-neutral alcohol, the steep excise duty rise in West Bengal, and a drop in sales in Tamil Nadu led to the decline in net profit. As a result of these, volumes were static at 30.5 million cases, while the interest outgo on the debt of Rs 7,700 crore sapped out net profit. Operating profit dropped by 30 per cent to Rs 200 crore.
“We feel these parameters are a one-time development,” said a company spokesperson.
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